“I’d like to share something on transparency. SGM put this as a key pillar and I hope they are looking into being transparent on procurement policies, tender processes, financial and accounting procedures and management selection. I’d like to just zoom into one topic which I believe is dear to our members’ heart. The topic is on membership and AGM (Annual General Meeting).

“I’d like to share something on transparency. SGM put this as a key pillar and I hope they are looking into being transparent on procurement policies, tender processes, financial and accounting procedures and management selection. I’d like to just zoom into one topic which I believe is dear to our members’ heart. The topic is on membership and AGM (Annual General Meeting).

In a sole proprietorship business, the partners put up their own paid-up capital. They run their business and how they divide the profit among themselves is up to them, because it’s their effort and their own capital. In public listed companies, the management running the company is answerable to the shareholders, because it was the shareholders who forked out the capital, in return for shares-holding in the company. During the annual AGM of these public listed companies, every share holders are invited to attend, even if you owned just one share of the company. The audited accounts together with the auditors report are tabled to the shareholders. Shareholders are free to ask questions on the accounts and financial standing of the company. And shareholders have rights to vote and ask about the plan and prospect of the company during AGM.

SGM is a non-profit and religious organisation. It is not a sole proprietorship. GD and the 6-man ECC are not the only people who fork out their own paid up capital to run the organization. In fact, the “capital” are contributed by members. In this way, the members are like shareholders of a public listed company. As such, members should be able to attend AGM meetings where the accounts are being tabled to the members for discussion. The members should also be able to ask questions on the financial matter during the AGM.

Unfortunately, that is not the case today. From SGM’s Constitution point of view, the members who have contributed our hard earned money are considered well-wishers of the organisation. And we are also called visitors. Legal membership of the organisation are base on selection and recommendation. Even if you are a legal member (known as Associate Members in the Constitution; Associate Members are usually venue contributors), you have no rights to vote nor attend AGM. AGM are attended by what is called Full Members. How do you become a Full Member? First, you have to become Associate Member, then through recommendation and final approval from ECC (highest level of authority), you will be appointed as Full Member. ECC has the discretion to reject any Full Member applications without assigning any reason thereof.

This is where the problem lies. Majority of Full Members are people who were members from NSM times. NSM was Nichiren Soshu Malaysia, the original name of our society before SGM was incorporated. These members are probably senior citizens (60 years or above) by now. Some are not active anymore. Over the years, the selection of Full Members is only for the elitists, for people favoured by SGM leaders. How many of the current Full Members attend AGM? How many of them are able to look at the financial health and the best interest of the organisation? There is hardly any youth representative in Full Members today. What is the implication of this in the future? Is SGM looking into changing this fundamental organisation structure? This is one of the reasons people left in frustrations.

If SGM wanted to practice transparency, then be transparent to all members who contributed, not just the Full Members. I understand that we have now appointed a professional external auditor firm. Invite all of us to the AGM to listen to the auditors. If the auditors’ findings are only for the eyes of the top leaders and Full Members, is this still considered transparent? Or is it just for show that SGM has taken actions? We have one more year to go before the next AGM. There is enough time to implement this. If SGM is sincere, then the dialogue and communication on this fundamental gap need to be addressed.“

Sharing from a reader who wished to remain anonymous. We are glad to see people chipping in. Please continue to do so. We need more contributors, voices from the grass roots, especially if you can write in Mandarin. Thanking you all in advance.

20 thoughts on “Transparency in organisation structure 组织结构透明度。”

Sorry, but I thought in a Sole-proprietor business, the only one running the business is, as the name suggests, the proprietor himself whereas in a partnership business the partners contributed their share of the business capital. Correct me if I am wrong. Thank you.

@bcphuah, thanks for pointing out but since this is a reader’s opinion, we will not be editing the article. The point that the reader is trying to convey though, is that SGM is not GD’s own business nor is it the ECC partners’ business. They are merely administrators that should be serving the contributing members and the members have a right to know how the funds are being used. Just like a public listed company is accountable to the shareholders.

I thought all societies must submit their annual audited accounts to the registrar of societies every year. AND there must be yearly AGM . All members have a rìght to attend provided they have paid their dues. Like annual subscription fees. If the accounts were audited, and the AGM properly conducted, theses issues shouldn’t arise. I think the people who headed the SGM probably drafted a constitution to their favour. Or to put it nicely, the constitution was not drafted ti reflect the SGI spirit.
Hence such high 5-handedness.

The underlying root issue is that SGM currently have only 300 members, from a legal stand point. These are the Full Members mentioned in the Constitution who paid yearly fees. The are mostly senior citizens due to their membership transferred from yesteryears of NSM. That means the other 39,700 members in Malaysia who gave yearly contributions through kofu fund or during gokuyo are just “well wishers” according to the Constitution. SGM leaders call all of us as members, but we are not a legal society members but just faith members. Putting it harshly, we have been conned indirectly into believing we are society members when the real fact is we have no rights to attend the yearly AGM. I agreed with the anonymous reader who wrote in. This has to change if SGM wish to have transparency, accountability, fairness and responsibility. Without this change to the fundamental structure, SGM is just serving out lip service.

I was an auditor in a financial institution based in Singapore and now I am working in another a large international financial institution in the design and implementation of control [including governance, separation of duties and authorities] in combating financial crime, abuse of power and ensure transparency.

I had also involved in discussion with SGM on the 3 Line of Defense and engagement of external auditor. Based on my personal engagement with SGM, the SGM leadership still had a very long way to go to demonstrate transparency being practice in SGM [in particular on membership, financial management and segregation of power and authorities among the various committee or exco].

Noted that SGM leaders despite my repeated appeal and iteration they had continue to fail or refuse to release the Term of Reference on the appointment of external auditor [including the external auditor roles and responsibilities, the audit scope and the back-audit of at least past 5 years financial statement/management as well as a commitment by SGM leader to take action to rectify the weaknesses and restitution in the event of abuse of SGM fund].

Sad to say, the 3 Line of Defense in its present structure will continue to fail to ensure transparency and accountability.

I will continue to strongly chant for change. Nam Myoho Renge Kyo to all our comrade in faith.

Hi there! Thank you for your comment in Daylight. That was very insightful of the engagement with SGM in this matter. It is sad to note that what we have been suspecting all along is true – that SGM is not really working hard enough to be transparent. Unfortunately, many SGM leaders are still blindly believing that the top SGM leaders are making changes and thus, as the organization breaks apart under our very eyes (due to in-fighting and quarrels), many are still not seeing it. One way is educating and awareness. The other is through our prayers for shoten zhenjin to appear to reform SGM. Let’s continue to chant Nam Myoho Renge Kyo for everyone’s happiness.

The problem I feel is more about our general leadership, and not the top leaders. Most would choose the easy path to believe and trust, and not question. They also feel that they do not know much and do not want to ask question. Granted, there are those who receive less education and exposure to large corporation may not be able to comprehend it much. The unfortunate thing is that those who are young and more educated do not want to learn more.

The second problem is that our leaders in general is very timid. They can be easily frightened by the word ‘slander’ and ‘General Director’, as if any form of questioning on financial matters or sexual abuse is the workings of sansho shima and out to destroy our organisation. So, they turned off and ask people not to speak. This plays right into the hands of those who want to control the members.

Thirdly, when leaders asked about full member and associate member, our top leaders will brush it off by saying that we are not a political party and do not need to know these things. After all, we are a faith organisation. They do not want to turn SGM into a political party, with factions. We must all just follow Sensei, and since Sensei appointed GD, it goes without saying, must trust GD.

I agree with the point that SGM is not really working hard enough to walk the talk of transparency and accountability. I don’t think they are even sincere. Don’t take my words for it. Action speaks louder. Since the memo in April and the roadshows on each state, what have SGM got to show in this respect? We were taught the three proofs – where is the actual proof? What are the terms of reference of the external audit, how is the separation of power being practice, where we don’t see the 6 person appearing in every single exco, and when will we actually hire a full time qualified accountant?

It’s unfortunate that we are all so submissive and obedient. For a faith organization which empowers individuals to bring forth unlimited inner strength and capability, as opposed to Christianity or Islam where their faith is absolute (and blind) trust on an entity God, we are subservient and reverent towards one person (GD). What happens to our own capacity to think, to stand for the truth and to voice out when there are things that is blatantly wrong? We can all wear yellow and demonstrate on the street against unjust government but when it come to Gakkai, we became tame, sheeplike even.

One of my leaders get all worked out when matters of politics are discussed. You would think that he is the example of someone who would stand for truth and justice. But when it comes to Gakkai matters, he kept quiet, even to the point of making excuses for SGM. I just do not understand how this can be. Wrong is wrong. Right is right. It’s as clear as black and white. We used to tell our members that the Law of cause and effect is strict. And yet, we are tolerant, yielding and turning a blind eye when wrong things happens within the four walls of Cheras Kaikan.

The court of law practices the concept of “innocence until proven guilty”. We are not able to proof any corruption or womanizing by the top level of SGM leaders (except in the case of Johor, as our Johor friends has documentary proof of the wrong doing of Mr Tan). What I think we can proof is that our current top leaders in SGM have failed in their duty to create a harmonious organization. They have failed to bring people together to dialogue and to come to a peaceful settlement. Instead, some of their actions/inactions have emboldened many other leaders into gossips, bad mouthing, accusing and reprimanding district leaders who voiced out. They have failed in their duties, for this is very clear to me in the current toxic environment and yet, they have not taken any Responsibilities.

You know why? That is because they are untouchables. They have twisted the Constitution such that we are all powerless to touch them. There are only three hundred Full Members who are able to vote and attend AGM. Many of them are probably not active in Gakkai or too old to bother. As long as they acted within the boundary of the Constitution, no one can touch them. SGI is not able to do anything because SGI do not have jurisdiction to an organization incorporated in Malaysia.

SGM is going to sit through this and let time takes it course. Time is at their side and they also have the resources. How long can you wait? Our Johor friends have fought this battle for 2 years, had many dialogues that fell on deaf ears. They have since moved on so that they can practice happily in a positive environment. How long more can we pretend nothing have happened? Will you participate in making windmills and taking iPhone6 videos of your happy windmill-making face, pretending that you are so thrilled for launch of SGI SEA TC? Will you carried out your duty of collecting kofu fund, looking straight into your members eyes while your hand reached for their hard earned money, not knowing where the money will go into? Do you look at the recent Discover Beauty pamphlet and counting the cost and wonder why we spend hundreds of thousands of ringgit running this art exhibition to proof a point? These are thoughts running through my mind and I am not able to come to peace with it.

I have been a member of the SGM for more than 40 years and am only an Associate member and not a Full member. Guess SGM would only invite people who are `yes-men’ to be Full member but not one who is very critical of the leadership of SGM both at the local and national levels. Suffice it to say that SGM only pay lip-service to the concept of democracy in the organization. I would go so far as to say if one reads and understands SGM constitution one would definitely conclude that there is no democracy in SGM! Things are skewed in such a way that only a handful of leaders are determining the fate of the organization and the rest of the membership are too submissive to speak and think for themselves.

At the top of the SGM leadership, it is a case of you scratch my back and I will scratch yours. What transparency are u talking about?! Keep on dreaming!! The grand scheme of making SGM a better organization is nothing but pipe dreams which look beautiful and nice from outside but on close analysis simply impractical and idealistic. It is all hogwash and puling the wool over the members and leaders eyes. But then again, to be honest, SGM all these years have been doing all these and the members, except for a handful of outspoken ones, have been too meek and submissive. It’s time all of us wake up from this stupor and save our beloved organization from the clutches of such irresponsible so called senior SGM leaders. For a start, let’s start by being more vocal and voice out our unhappiness at the state of affairs in the organization at every opportunity we have such as leaders meet and even at any appropriate meeting where SGM leaders are in attendance. Let’s demand for explanations and answers to what is happening in the organization. Let’s not let a handful of so-called top leaders determine the fate of our organization.

I feel you brother [Can i call you brother?]. Like you, I am often pissed by some leaders reaction to this. Worse than those that you mention, finding excuse for SGM and return fire, it is those that simply couldn’t care less. Not even interested. Perhaps, they do not love SGM like you and I. If we love this organisation, we cannot be not affected by what is happening today.

There are many leaders who are sincere and all their actions are out to protect the organisation. Yes, some can shout loudly on the corrupted government and sheepishly quiet about SGM problem. We must always keep in mind, there are also probably feeling hurt and sad about this. I believe many reading this also feel the same way. We must have patience.

We must change ourselves, and not keep pushing others to stand up. If we do, the organisation that we all love so much, and put in so much effort to build, will break into many pieces. Our practice is human revolution. We change. Gain trust of all our 4 division leaders and members in our local chapter. Gain trust and show actual proof of practising this Great Buddhism in work and family. Have dialogue with others with an open mind and patience. Understand others before wanting them to understand us.

The Soka Gakkai, like what Sensei said, is an organisation of the Buddha’s will. Not a boast. It’s true. It has spread the Daishonin Buddhism worldwide. It is, however, manage by common mortals endowed with the three poisons. This means that we must do our very best to protect the organisation. We can be direct and even strict to high ranking leaders. Question them and demand answers and proofs. After all, top leaders have the most heavy mission of ensuring the organisation is being protected. But to our members and also other leaders, we must be cordial and always maintain good relation. Do not expect every leader to think like us, just because we feel that we are absolutely right. If fighting evil is so easy, then, we will not have war.

Even if we disagree, it is all right. That’s what dialogue is about. Sometimes, we may even find out that we are the ones who were mistaken. If we go on a rampage and argue with whoever we meet, we will only lose credibility and trust, and no one will listen anymore.

Never neglect our basic practice. Faith, practice and study. In the end, if we get overwhelmed by this problems, we are leaving the path of faith and our mentor. That’s not worth it. There are many sincere people in SGM. You were right, that we cannot be sheep. We must have courage and wisdom. Knowledge is a prerequisite. Came across this site, which I think pretty fair and informative http://www.quietrevo.wordpress.com . But we must also be very careful not to destroy the harmony and cordial relationships with one another. We must respect each person, regardless of opinion.

Ringgit, I wanted to tell you to go back to the gohonzon and chant more daimoku. But then, it’s not really right. One, I didn’t chant that much myself, and two, I should be chanting for you and not asking you to chant. Human revolution is what one does, and not ask others to do, right? So, I will chant for your happiness and be able to rise above this problem to practice this great Buddhism with joy and confidence. If you feel like it, of course, join me.

Thanks brother 🙂 great advice there. I’ll definitely have to put more efforts into my daimoku. The thing is, I fail to see how merely chanting will help change the organization. Sure, daimoku is key and putting forth the strategy of Lotus Sutra is priority. But I think that on top of just chanting, we have to take actions. We can and should continue to ask difficult questions to the top leaders. We have to closely monitor each actions they claimed they have put forth and ask deeper questions, such as the one suggested by a reader above about dissecting what exactly are he external auditors supposed to deliver. The Open Letter to Tan Kian Howe, which was published in Quiet Revolution is a good one. Thanks for that link.

As I ponder into your words and the words of others here, perhaps we all need to have a united prayer objectives. At this moment, each of us have our own thoughts of what’s going to be our prayer objectives to fight this evil. As a group, we don’t have that one mind. GD issued a list of prayer objectives in his August memo. Imagine at least 20,000 leaders/members are chanting together with that ichinen towards that objective. All meeting venues have that objectives listed. Their daimoku and ichinen is united and we are like scattered guerrilla, each with their goals but not as one.

Perhaps Daylight can publish such objectives so that all members and leaders can also chant and send daimoku towards that end.

As what the Writer stated, in a company even if you hold one share, you are entitle to attend AGM and exercise your right to vote and question the board. If a shareholder can’t attend the AGM he/she can appoint a proxy to attend on his/her behalf. A proxy can be anyone the shareholder wish to appoint and has the same right as a shareholder. Nothing is stated in SGM Constitution on the appointment of proxy. Most of the full member are senior in age and if they can’t attend the AGM, then the decision making and control is in the hands of the top few person. For good governance, action has to be taken to rectify this practice immediately. Professional need to be engage to look into the Constitution and membership issue.

It is also worrying to read about the comment from Yeonshen that the 3 line of defense that SGM plan to implement would not work. And looking at the progress so far, the ECC has not taken serious view on this matter. SGM can organised big scale national event so efficiently but how long they need just to engage accountant and auditor!

I would like to comment on BoE comment on how long it would take for SGM to engage accountant and auditor by posing a question: If you are a fully qualified accountant/auditor, and worth your salt, would you consider taking up such post in SGM? Think for yourself, what is the future career path in SGM, if any? Unless you are some run of the mill accountant/auditor, you would seriously think twice before working for SGM. It is a dead-end, friend!!

Hi bcphuah, sorry for the delay in replying to your comment. What I meant was why SGM is procrastinating the appointment of auditors and accountant. For an organization worth billion in assets (which I am aware only recently), a qualified accountant and auditor should be appointed long time ago to ensure that all transactions are properly recorded and accounted for.

Just read from Oct 2016 cosmic that Crowe Horwath, which is the 5th largest accounting firm, has been appointed as external auditors during this year AGM. A good start, however, no mentioning on membership matter which is very crucial as the audited report from Crowe Horwath will only be presented at the AGM to the privilege few full members.

In response to bcphuah, I feel that a multi million organizations should pay at a market rate for a qualified accountant to work for them, not paying at accounts executive rate to do the work. I am sure SGM is able to afford especially at this crucial moment where they needed to employ qualified accountants asap. What’s puzzling is why procrastinate to hire qualified accountants to manage their financials? What is the excuse? You pay peanuts, you get monkeys doing the job.

Thank you `Ringgit’ and `BoE’ for your comments. Let me reiterate, I do not for a moment doubt SGM’s capacity/ability to pay market or even over market rate for any personnel they want to hire. Point is, looking at the future prospects in terms of career advancement, unless you are a die-hard SGM member one would certainly think twice before taking up employment with SGM especially if one is still young and ambitious. This is my personal opinion.

Sole-proprietorship, Partnerships, Private limited companies, Public Listed Companies, Societies, NGOs, Religious Organizations and their equivalents are all just vehicles to achieve and make to fruition the dreams and ideals of a person or a group of persons.

The vehicle is just a means for gains, whatever that may be.

Most times, these vehicles will start off modestly and with humble beginnings. Through the years it will progress and will amass wealth, reputation and status. Some will continue to grow to be conglomerates, iconic religious organizations, reputable businesses while some will dwindle and fade away.

Those organizations that are successful, will enjoy the limelight, status, admiration, wealth and many more dazzling achievements. So much so, that they are too big to fail. God forbid if they were to fail..! Sounds familiar?

Well yeah, SGM is “too big to fail”. Its a syndrome that has haunted the organization for decades and could probably be one of the many reasons for its current troubles. Through the years, the SGM has build its name and reputation as an organization for peace, respect for life and striving for betterment of its members. In the process, gaining leverages in many areas of government and civil society. SGM has become so big, that it cannot be seen as a failure, come what may.

So, what do you think will happen when the scandals hit SGM? The leadership will protect to their death the reputation and status of the organization, in lieu of transparency, governance, integrity, comradeship, justice and all things noble. All this are done to ensure nothing changes and things stay the same.

The advantage of a religious organization like SGM is the use of its religious dogma as a veil or shield to cover their true intentions. Religious dogmas are very sinister tools, if used with bad intentions to control or influence its practitioners. A gosho passage can be used for both good and bad intentions, depending on the heart of the deliverer. Seems familiar?

So, it is important that we are able to differentiate between organizational issues and religious issues. They are NOT the same and are way apart. You mix them, it becomes a concoction for personal gains and ill intentions. History has proven that.

When talking about the 4 pillars of TFAR, shouldn’t SGM reform ECC, CSC and General Council to be more independent from one another? If you read Jul ’16 Cosmic you will notice the 6 ECC members are also in CSC (faith org) and General Council (secular org)… Aren’t the repitition a form of conflict in interest?

As for the full member status, it will be simple if it’s like what was being discussed earlier like the shareholding company. All members will get the invitation to attend the AGM and it’s up to the members if they want to attend or not. Unfortunately SGM does not operate that way. Should ROS revise it’s current Act to evolve with time and the scale of size a non-profitable org could grow? Doesn’t it learn from the past incidents where religious org and charitable org misappropriate the fund? I think we should put some suggestion on ROS table to ring a bell in those regulators’ mind. Then any org have to abide the law…

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